Don't Sweat Today's S&P Pullback

The S&P 500 Index (SPX) is pulling back after recording its longest winning streak of the year, although this may have been in the cards

Karee Venema

Oct 6, 2015 at 11:05 AM

On Monday, the S&P 500 Index (SPX) notched its fifth consecutive daily win -- the longest such winning streak since last December. Since 2011, the SPX has turned in 21 such streaks, with the current run translating into a 5.59% gain for the broad-market barometer -- the second-best of the bunch.

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Overall, the sixth day has been pretty uninspiring for the S&P 500. Specifically, since 2011, the index has averaged a next-day loss of 0.1%, and has been positive just two-fifths of the time. Today, the SPX is off 4.1 points, or 0.2%.

However, following a five-session winning streak, the SPX's odds of being positive one and two weeks out increase to 70% and 75%, respectively, compared to the index's anytime stats since 2011. What's more, the S&P averages a two-week return of 0.5% after a winning streak, compared to 0.4% anytime.

Since 2009, the longest daily winning streak for the SPX has been eight days, which has happened twice: once in late January 2013, and the other in mid-July of that same year.

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